Falling rupee raises study abroad costs, students rethink plans
The Indian rupee's depreciation is significantly increasing overseas education costs, forcing students to delay plans, opt for shorter programs, or consider domestic options. This trend, coupled with global tuition inflation, has led to a 7%-11% a...
By ET Online | Updated:
Agencies
The depreciation of the Indian rupee is increasing the cost of overseas education, prompting many students to delay plans, choose shorter courses, or consider studying in India instead, according to a report by The Times of India.
The total cost of popular courses has risen by about Rs 3.5–4 lakh over the past year, putting pressure on middle-class household budgets. “Indian students are adjusting their strategies by either deferring their plans by a year or two or by finding the right financial strategy, be it through loans, scholarships etc,” said Piyush Kumar to TOI.
The rupee has depreciated 4.9% against the US dollar, nearly 2.5% against the euro and 3.3% against the pound so far this year, data showed. When combined with global tuition fee inflation, the overall increase in costs is estimated at 7%–11% annually in rupee terms.
In absolute terms, students may now spend Rs 5 lakh to Rs 10 lakh more per year compared to 2023, depending on the course and destination, said Pankaj Kapoor to TOI. “Middle class households are most affected, with long-term savings getting diverted towards education expenses,” he added.
Students shift to Europe, focus on ROI
There has also been a dip in the number of students going abroad this year compared to last year, said consultants. Many are now preferring European destinations over the United States, citing cost and job uncertainty.
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“The broader issue is that earlier students were getting ROI (return on investment). Now, there is job uncertainty across markets but in India, options for specialised masters are limited which is why students prefer to go abroad,” Meenal Damani told TOI.
Experts stated that students are aligning remittances with fee schedules and opting for loan structures that offer long-term predictability. They are also exploring newer destinations such as Germany, Italy, France and Ireland, as reported by TOI.
“Indian students are looking beyond traditional markets towards destinations such as Germany, Italy, France, Ireland, and other parts of continental Europe,” Akshay Chaturvedi told TOI, adding that the focus has shifted from brand value of universities to return on investment.
